Many new investors get caught up in the excitement of buying investment property.
They focus on all the money they’re going to make from flipping a property or buying a rental.
They get emotionally attached to the deal, and in some cases, even get caught up in bidding wars.
Even if they manage to find a property at a great price, what they don’t understand is that cheap does not necessarily mean value. In other words, it could be cheap for a very important reason.
All of these scenarios often result in investors looking past some critical flaws in the property.
These flaws can cause major problems later on, either when they try to sell the building, or even when they try to find tenants to rent it.
Here are 4 big ones to avoid…
1) High condo fees
Condos are a favourite investment for many investors. The monthly condo fees take care of all exterior maintenance, leaving only minor interior maintenance to deal with.
The problem is that many investors don’t realize they usually have little to no control over condo fee increases that are set by the condo board.
In addition, they often overlook the fact that higher than usual condo fees can be a big problem when trying to sell the property down the road.
A family friend is in this exact situation… they bought a condo years ago as an investment, and the condos fees are VERY high.
So high in fact, that they’ve had their unit listed for sale for over 1 year, and it’s still not selling, despite the fact that the area is very trendy, with many high income buyers.
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